Contracts
A NC buyer submits an offer with a 15-day due diligence period and a $5,000 due diligence fee. On day 10, the buyer discovers the foundation has serious cracks costing $40,000 to repair. The buyer should:
AAutomatically receive a full refund of both the due diligence fee and earnest money
BTerminate before the due diligence deadline and receive the earnest money refund, but lose the $5,000 due diligence fee✓ Correct
CProceed with the purchase since the due diligence period has passed
DRequest the seller make all repairs before closing with no option to terminate
Explanation
The buyer may terminate during the due diligence period for any reason and receive the earnest money back, but the due diligence fee is non-refundable and goes to the seller.
Related North Carolina Contracts Questions
- Under the NC Offer to Purchase, which party typically pays for the home inspection?
- A NC real estate contract becomes 'binding' when:
- If a seller fails to provide the RPOADS before a buyer makes an offer in North Carolina, the buyer may:
- An 'executory contract' in NC real estate is one that:
- Specific performance as a remedy in a North Carolina real estate contract requires:
- The North Carolina Offer to Purchase and Contract is a standard form approved by:
- In NC real estate, 'rescission' of a contract means:
- A counteroffer in North Carolina real estate:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →